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Cullumber Corporation has collected the following information after its first year of sales. Sales were $1.440,000 on 120,000 units, selling expenses $210,000 (40% variable and 60% fixed), direct materials $504,000, direct labor $169,400, administrative expenses $276,000 (20% variable and 80% fixed), and manufacturing overhead $382,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Your answer is correct Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year, (Assume that fixed costs will remain the same in the projected year) 300.000 (1) Contribution margin for current year $ 396000 Contribution margin for projected year 121 461400 Flved Costs e Textbook and Media Attempts: 1 of 3 used
(b) Compute the break-even point in units and sales dollars for the current year. (Round Intermediate calculations to 2 decimal places, es. 15.25 and final answers to decimal places, eg, 125) units Break-even point in units $ Break-even point in dollars e Textbook and Media Attempts: 0 of 3 used Submit Answer Save for Later